Great video! Thanks! Are there any good software programs you recommend that would help predict some of these wells? I don't think it's a substitute for a petroleum engineer/appraiser like you, but definitely could offer a ballpark idea of what's something could be worth
There are a lot of decent and affordable (-ish) options for putting a ballpark forecast on production and applying some calculations to estimate value. The math isn’t hard though, so if you know how to work any of those options you’re probably better off just using Excel or Numbers to calculate it. 24-48x one month of royalties is another way to estimate it, but there are also a lot of things that make that estimate not work. The harder one is estimating the value of wells that are not yet producing, or even not yet drilled. That’s where I’d call in an expert for at least some guidance.
Great video! Thanks! Are there any good software programs you recommend that would help predict some of these wells? I don't think it's a substitute for a petroleum engineer/appraiser like you, but definitely could offer a ballpark idea of what's something could be worth
There are a lot of decent and affordable (-ish) options for putting a ballpark forecast on production and applying some calculations to estimate value. The math isn’t hard though, so if you know how to work any of those options you’re probably better off just using Excel or Numbers to calculate it. 24-48x one month of royalties is another way to estimate it, but there are also a lot of things that make that estimate not work.
The harder one is estimating the value of wells that are not yet producing, or even not yet drilled. That’s where I’d call in an expert for at least some guidance.